Retired Boomers Are Spending the Kids' Inheritance on Travel, New Data Shows

Retired baby boomers are increasingly choosing vacations over bequests, a shift that could shrink the $124 trillion «Great Wealth Transfer» that Gen Z and millennial heirs have been counting on. New data from Abta, Britain's largest travel trade association, shows that 82% of people over 65 took a holiday in the past 12 months, up five percentage points from two years ago. The association's chief executive attributes the spike specifically to older people spending money that would otherwise have formed part of their children's inheritance.

The phenomenon has acquired a nickname in Britain: «ski-ing,» shorthand for «spending the kids' inheritance.» A separate report from retirement provider Standard Life found that one in seven British parents plan to prioritize enjoying their money in retirement over leaving an inheritance. The pattern reflects a generation that is living longer, is wealthier than its predecessors, and in many cases has paid off its mortgage and begun drawing a pension.

Abta chief executive Mark Tanzer said the over-65 cohort is «probably fitter than it used to be,» adding that with housing costs settled and pension income arriving, «you are actually quite cash rich.» He said older travelers have more disposable income and want experiences, and that some may be thinking they do not want to leave their savings to their children — while also not wanting to leave it to the taxman. «There's that sense of 'well, if I don't spend it, it will just go to inheritance tax,'» he said.

Cost-of-living pressure appears to be doing little to restrain this spending. When asked whether such concerns would affect their holiday plans in the next 12 months, almost half of over-65s said it had «no impact.» Unlike younger people, many boomers do not face rising rents or food bills, and the Institute for Fiscal Studies has found their disposable income continuing to rise. Having spent a lifetime working, many have concluded it is their turn to enjoy the money.

The trend is not confined to Britain. A 2024 Northwestern Mutual survey of 4,500 U.S. adults found that just 22% of baby boomers expect to leave an inheritance, and more than half are explicitly planning not to. Only 11% said leaving something for their children is their top financial goal. Some boomers have adopted what amounts to a philosophy — dying with zero — deliberately spending down their wealth while alive rather than preserving it for heirs.

Personal finance coach James Beckett described the accumulation mindset as a trap, saying it is «such a shame to see people dying with so much money in a job they've worked in that they don't enjoy, or with people they don't like.» He said many go on autopilot, accumulating wealth without thinking about what it is for.

The consequences could land hardest on younger generations who have built retirement plans around future inheritances. More than half of Gen Zers and nearly 60% of millennials said they are depending on an inheritance to retire comfortably, according to the survey data. For those heirs, opening a parent's will to find little or nothing left would come as a significant shock — and would leave them to fund their own later years on savings and earnings alone.

The shift also carries broader economic implications. If older households spend more freely on travel and experiences, that spending supports tourism, hospitality and leisure businesses. But it also means less wealth passing between generations, potentially widening the gap between those who receive family money and those who do not. For now, the data points in one direction: many retirees have decided the money is theirs to enjoy, and they intend to enjoy it.

5Views

Author

Delaney Sawyer

Society Reporter

Delaney Sawyer covers public affairs, politics, business, culture and daily news for Core Memo. The role focuses on verification, context, and clear explanations for readers.

All articles by this author